When Willard 'Mitt' Romney was Governor of Massachusetts, those dazzled and blinded by the glare, ignored that the Banner was waving of 'Tax Cuts, blah, blah, blah,' ignoring the increased debt, astronomical increases in fees, unfunded infrastructure and post-retirement benefits.
Isn't there a pattern here? Is this the Republican method of 'Balancing A Budget'?
President Clinton left office with budget surpluses that Republican squandered, proclaiming 'Trickle Down' theory, long discredited.
And now, Governor Chris Christie, among others, with false promises and sleight of hand.
New Jersey Once Again Uses Transportation Dollars to Plug General Fund
Holes
Christie outlined his “Pay-As-You-Go” transportation
funding plan in 2011,
but instead of being used for the NJDOT Capital Program,
some has been
shifted to the general fund. | Photo: Office of the Governor
Just like
last
year, and the year before
that,
New Jersey is using fiscal gimmicks to meet the state’s funding obligations to
transportation. As reported in
NJSpotlight,
not only will the state not meet its planned pay-as-you-go financing (or
“PAYGO”) two years in a row but it kicks the task of finding a sustainable,
long-term revenue source to pay for transportation down the road again. This
year’s planned $375 million in PAYGO is being replaced with a one-time shot of
$250 million from higher than expected proceeds for previous years’
transportation bond sales and some crafty capital project planning.
State Treasurer Andrew Sidamon-Eristoff explained that the $250 million is
available because the State was “able to offer
attractive
interest rates on [its] previous bond sales.” But these “attractive interest
rates” Sidamon-Eristoff speaks of come at a price: more debt resulting from
higher interest payments on bonds over the next 31 years.
Where and how New Jersey makes up the remaining $125 million for its
transportation capital program has yet to be determined. While details have not
yet been released, it appears that the plan, according to Treasury Department
spokesman William Quinn, will prioritize transportation projects that are
eligible for a higher percentage of federal funding for this fiscal year,
suggesting that the state does not intend to use its own dollars to invest in
transportation infrastructure. The NJDOT Capital Program update, due to be
released in the coming weeks, will provide a clearer picture of how the state
intends to fund its transportation program.
The most recent move continues a trend that began last year. To make up for
last year’s use of PAYGO funds to plug the general fund deficit, Governor
Christie authorized the state to issue $1.247 billion in new debt to fund FY2013
Capital Program, adding to New Jersey’s already large
debt
load.
The only year in which the Governor utilized PAYGO for its intended purpose,
to help fund the NJDOT Capital Program (and not the general fund), was the
program’s first year (FY2012). With two years remaining in the existing capital
program and no additional revenue identified, a better funding plan must be
developed. Funding from unexpected and unplanned sources, as in higher than
anticipated bond proceeds, should be used to advance additional projects; not
just fill a budget hole.
The massive existing infrastructure needs of the state
require advanced planning that are hampered by haphazard, one-shot funding
sources. And these do not even include the planning preparation needed to
address transportation
impacts
from climate change.
If no new transportation funding sources are identified, the issuance of more
debt — or worse – cuts to the capital program will become the norm.
The good news is that Sidamon-Eristoff was satisfied that there would be no
need to increase Transportation Trust Fund borrowing above the planned $850
million level of Christie’s 5-Year Plan. But then again, it was Sidamon-Eristoff
who stated last year that the pillaging of PAYGO was a
one-year
initiative.
No comments:
Post a Comment